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AN ACT
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relating to dropping courses and student withdrawals at  | 
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institutions of higher education, including the refunding of  | 
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tuition and mandatory fees. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  Subchapter Z, Chapter 51, Education Code, is  | 
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amended by adding Section 51.907 to read as follows: | 
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       Sec. 51.907.  LIMITATIONS ON NUMBER OF COURSES THAT MAY BE  | 
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DROPPED UNDER CERTAIN CIRCUMSTANCES.  (a)  In this section,  | 
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"governing board" and "institution of higher education" have the  | 
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meanings assigned by Section 61.003. | 
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       (b)  This section applies only to an undergraduate student  | 
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who drops a course at an institution of higher education and only  | 
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if: | 
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             (1)  the student was able to drop the course without  | 
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receiving a grade or incurring an academic penalty; | 
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             (2)  the student's transcript indicates or will  | 
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indicate that the student was enrolled in the course; and | 
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             (3)  the student is not dropping the course in order to  | 
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withdraw from the institution. | 
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       (c)  Except as provided under rules adopted under Subsection  | 
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(d), an institution of higher education may not permit a student to  | 
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drop more than six courses, including any course a transfer student  | 
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has dropped at another institution of higher education, under  | 
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circumstances described by Subsection (b). | 
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       (d)  The governing board of an institution of higher  | 
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education may adopt a policy under which the maximum number of  | 
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courses a student is permitted to drop under circumstances  | 
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described by Subsection (b) is less than the maximum number of  | 
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courses that a student may drop under Subsection (c). | 
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       (e)  The Texas Higher Education Coordinating Board shall  | 
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adopt rules under which an institution of higher education shall  | 
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permit a student to drop more courses under circumstances described  | 
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by Subsection (b) than the number of courses permitted to be dropped  | 
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under Subsection (c) or under a policy adopted under Subsection (d)  | 
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if the student shows good cause for dropping more than that number,  | 
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including a showing of: | 
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             (1)  a severe illness or other debilitating condition  | 
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that affects the student's ability to satisfactorily complete a  | 
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course; | 
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             (2)  the student's responsibility for the care of a  | 
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sick, injured, or needy person if the provision of care affects the  | 
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student's ability to satisfactorily complete a course; | 
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             (3)  the death of a person who: | 
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                   (A)  is considered to be a member of the student's  | 
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family under a rule adopted under this subsection for purposes of  | 
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this subdivision; or | 
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                   (B)  is otherwise considered to have a  | 
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sufficiently close relationship to the student under a rule adopted  | 
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under this subsection that the person's death is considered to be a  | 
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showing of good cause; or | 
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             (4)  the active duty service as a member of the Texas  | 
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National Guard or the armed forces of the United States of: | 
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                   (A)  the student; or | 
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                   (B)  a person who is considered to be a member of  | 
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the student's family under a rule adopted under this subsection for  | 
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purposes of this subdivision. | 
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       (f)  In determining the number of courses dropped by a  | 
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student for purposes of this section, a course, such as a laboratory  | 
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or discussion course, in which a student is enrolled concurrently  | 
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with a lecture course is not considered to be a course separate from  | 
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the lecture course if: | 
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             (1)  concurrent enrollment in both courses is required;  | 
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and | 
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             (2)  in dropping the lecture course, the student would  | 
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be required to drop the laboratory, discussion, or other course in  | 
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which the student is concurrently enrolled. | 
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       SECTION 2.  The heading to Section 54.006, Education Code,  | 
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is amended to read as follows: | 
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       Sec. 54.006.  REFUND OR ADJUSTMENT OF TUITION AND MANDATORY | 
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FEES FOR DROPPED COURSES AND STUDENT WITHDRAWALS. | 
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       SECTION 3.  Section 54.006, Education Code, is amended by  | 
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amending Subsections (a), (b), (c), and (e) and adding Subsections  | 
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(a-1), (b-1), and (b-2) to read as follows: | 
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       (a)  A general academic teaching institution or medical and  | 
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dental unit, as soon as practicable, shall refund the amount of  | 
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[fees and] tuition and mandatory fees [in excess of the minimum 
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tuition] collected for courses from which students drop within the  | 
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first 12 days of a fall or spring semester or a summer term of 10  | 
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weeks or longer, within the first four days of a [summer] term or  | 
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session of more than five weeks but less than 10 weeks, or within  | 
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the period specified by the institution for that purpose for a term  | 
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or session of five weeks or less that is substantially proportional  | 
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to the period specified by this subsection for a longer term or  | 
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session.  The institution or medical and dental unit may not delay a  | 
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refund under this subsection on the grounds that the student may  | 
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withdraw from the institution or unit later in the semester or term. | 
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       (a-1) An institution may assess a nonrefundable $15  | 
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matriculation fee if the student withdraws from the institution  | 
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before the first day of classes. | 
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       (b)  Except as provided by Subsections (b-1) and (b-2), a [A]  | 
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general academic teaching institution or medical and dental unit  | 
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shall refund from the amount paid by [to] a student withdrawing from  | 
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the institution or unit an amount equal to the product of the amount  | 
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of tuition and mandatory fees charged [collected] for each course  | 
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in which the student is enrolled on the date the student withdraws  | 
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multiplied by the applicable percentage derived from the following  | 
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tables: | 
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             (1)  if the student withdraws during a fall or spring  | 
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semester or a summer term of 10 weeks or longer [or comparable 
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trimester]: | 
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                   (A)  prior to the first class day100 percent | 
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                   (B)  during the first five class days80 percent | 
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                   (C)  during the second five class days70 percent | 
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                   (D)  during the third five class days50 percent | 
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                   (E)  during the fourth five class days25 percent | 
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                   (F)  after the fourth five class daysNone; [and] | 
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             (2)  if the student withdraws during a [summer] term or  | 
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session of more than five weeks but less than 10 weeks: | 
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                   (A)  prior to the first class day100 percent | 
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                   (B)  during the first, second, or third class | 
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day 80 percent | 
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                   (C)  during the fourth, fifth, or sixth class  | 
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day 50 percent | 
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                   (D)  seventh day of class and thereafterNone; and | 
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             (3)  if the student withdraws from a term or session of  | 
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five weeks or less: | 
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                   (A)  prior to the first class day100 percent | 
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                   (B)  during the first class day80 percent | 
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                   (C)  during the second class day50 percent | 
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                   (D)  during the third class day | 
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and thereafterNone. | 
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       (b-1)  If a student has not paid the total amount of the  | 
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tuition and mandatory fees charged to the student by the  | 
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institution or unit for the courses in which the student is enrolled  | 
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by the date the student withdraws from the institution or unit,  | 
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instead of issuing the student a refund in the amount required under  | 
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Subsection (b), the institution or unit may credit the amount to be  | 
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refunded toward the payment of the outstanding tuition and  | 
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mandatory fees owed by the student.  The institution or unit shall  | 
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issue a refund to the student if any portion of the amount to be  | 
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refunded remains after the outstanding tuition and mandatory fees  | 
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have been paid. | 
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       (b-2)  A general academic teaching institution or medical  | 
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and dental unit may provide to a student withdrawing from the  | 
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institution or unit a refund of a portion of the tuition and  | 
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mandatory fees charged to the student by the institution or unit for  | 
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the courses in which the student is enrolled on the date the student  | 
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withdraws in an amount greater than the amount required by  | 
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Subsection (b).  The institution or unit may apply the portion of  | 
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the refund authorized by this subsection toward the payment of any  | 
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outstanding tuition and fees as provided by Subsection (b-1), and  | 
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may refund the remainder of that portion in the form of, as the  | 
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institution or unit considers appropriate: | 
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             (1)  a payment made directly to the student; or | 
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             (2)  credit toward payment of tuition and mandatory  | 
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fees for a subsequent semester or other academic term at the  | 
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institution or unit. | 
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       (c)  Separate withdrawal refund schedules may be established  | 
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for optional fees [such as intercollegiate athletics, cultural 
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entertainment, parking, and yearbooks]. | 
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       (e)  A general academic teaching institution or medical and  | 
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dental unit may [shall] terminate a student's student services and  | 
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privileges, including [such as] health services, library  | 
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privileges, facilities and technology usage, and athletic and  | 
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cultural entertainment tickets, when the [a] student withdraws from  | 
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the institution. | 
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       SECTION 4.  Subsection (g), Section 54.006, Education Code,  | 
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is repealed. | 
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       SECTION 5.  The Texas Higher Education Coordinating Board  | 
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shall adopt the rules required by Subsection (e), Section 51.907,  | 
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Education Code, as added by this Act, relating to permitting a  | 
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student who shows good cause to drop more than a specified number of  | 
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courses, as soon as practicable after this Act takes effect.  For  | 
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that purpose, the coordinating board may adopt the initial rules in  | 
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the manner provided by law for emergency rules. | 
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       SECTION 6.  Section 51.907, Education Code, as added by this  | 
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Act, applies only to the number of courses that may be dropped by a  | 
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student who beginning with the 2007 fall semester enrolls in a  | 
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public institution of higher education as a first-time freshman. | 
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       SECTION 7.  The change in law made by this Act applies to  | 
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tuition and mandatory fees charged beginning with the fall 2007  | 
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semester. | 
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       SECTION 8.  This Act takes effect immediately if it receives  | 
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a vote of two-thirds of all the members elected to each house, as  | 
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provided by Section 39, Article III, Texas Constitution.  If this  | 
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Act does not receive the vote necessary for immediate effect, this  | 
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Act takes effect September 1, 2007. | 
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______________________________ | 
______________________________ | 
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   President of the Senate | 
Speaker of the House      | 
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       I hereby certify that S.B. No. 1231 passed the Senate on  | 
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April 19, 2007, by the following vote:  Yeas 31, Nays 0; and that  | 
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the Senate concurred in House amendments on May 25, 2007, by the  | 
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following vote:  Yeas 30, Nays 0. | 
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______________________________ | 
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Secretary of the Senate     | 
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       I hereby certify that S.B. No. 1231 passed the House, with  | 
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amendments, on May 23, 2007, by the following vote:  Yeas 144,  | 
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Nays 0, two present not voting. | 
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______________________________ | 
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Chief Clerk of the House    | 
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Approved: | 
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______________________________  | 
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            Date | 
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______________________________  | 
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          Governor |